In a controversial context reportForbes Revealed List of 20 “Billion Dollar Crypto Zombies” Layer 1 (L1), which the media outlet defines as crypto assets with substantial valuations but “limited utility beyond speculative trading.”
These cryptocurrencies and projects include Ripple, XRP, Ethereum Classic (ETC), Tezos (XTZ), Algorand (ALGO), and Cardano (ADA), among others.
XRP and Ethereum Classic in the spotlight
Ripple Labs, the company behind XRP, has been touted as a leading crypto zombie. Despite XRP's active trading volume of around $2 billion per day, Forbes says the token's primary purpose remains “speculative” and “lacking significant utility.”
However, Ripple Labs and XRP are not alone in this regard. Forbes reveals that 50 blockchains, excluding Bitcoin (BTC) and Ethereum (ETH), are currently trading at values in excess of $1 billion, with at least 20 classified as “functional zombies.” Collectively, these 20 blockchains hold a market value of $116 billion, despite “limited user bases.”
According to Forbes, an example of a “working zombie” is Ethereum Classic, which retains the distinction of being the original. Ethereum chain.
While ETC has a market value of $4.6 billion, its fees generated in 2023 were less than $41,000, raising questions about the viability of blockchain for the news organization.
Another crypto project mentioned in the Forbes report is Tezos, which raised $230 million through an initial coin offering (ICO) in 2017.
Tezos' XTZ token currently holds a market capitalization of $1.2 billion. However, blockchain fees earnings were meager, with $5,640 in February 2024 and a total of $177,653 for all of 2023.
Algorand, once hailed as an “Ethereum killer” due to its ability to process 7,500 transactions per second, faces similar challenges.
Despite a market cap of $2 billion and cash flow of $500 million, Algorand earned $63,000 in blockchain transaction fees throughout 2023. For Forbes, this casts doubt on its actual adoption and usefulness.
“Zombie” crypto blockchains
Zombie blockchains are classified into two groups by Forbes: spin-offs and direct competitors of established blockchains like Bitcoin and Ethereum.
Derivatives zombies include Bitcoin Cash (BCH), Litecoin (LTC), Monero (XMR), Bitcoin SV (BSV), and Ethereum Classic.
These blockchains, collectively valued at $23 billion, are said to have arisen from “disagreements” between programmers regarding the governance and direction of the system. original channels.
Forbes notes that when such conflicts arise, hard forks occur, resulting in the creation of new networks that share the same transaction history as their predecessors. The agency says their market value “often exceeds” their actual use.
Overall, the report highlights a growing disparity between the valuations of some projects in the cryptocurrency sector and their actual utility and use. Therefore, Forbes calls these projects “zombies”.
Featured image from Shutterstock, chart from TradingView.com
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